Germany and Italy Forge a Strategic Partnership to Reshape the European Union

Merz and Meloni’s Cooperation on EU Reform

In Davos, German Chancellor Friedrich Merz offered a preview of his upcoming meeting in Rome with Italy’s Prime Minister Giorgia Meloni. During his address at the World Economic Forum, Merz revealed that he had developed “new ideas” together with Meloni to reform the European Union. Among the initiatives is an “emergency brake for the bureaucracy” of the bloc. Merz described these changes as a key step to unlock Europe’s potential within what he called a “new era led by major powers” rather than global institutions. The German daily Handelsblatt noted that Italy’s prime minister “is becoming an increasingly important ally” for Berlin.

The Agenda of the Rome Summit

According to a statement from the German government, the discussions in Rome will encompass bilateral relations, European and economic policy, as well as defence and security topics. The Italian Prime Minister’s Office announced that the summit would begin at Villa Doria Pamphilj at 11:30 a.m. with official meetings, followed by a working breakfast and press conference. Later, at 4 p.m., Italian and German business representatives will convene at the Hotel Parco dei Principi. The cooperative stance of both nations, reinforced by global instability partly triggered by U.S. President Donald Trump’s comments about annexing Greenland, has deepened their alignment. This partnership was also reflected during the European Council in Brussels on Thursday evening.

Common Interests and Priorities

One of the main points on the agenda is competitiveness, an area where Merz believes Europe is falling behind. He emphasized the importance of enhancing Europe’s investment environment and developing a true capital market. In Davos, Merz also disclosed his long conversation with former Italian Prime Minister Mario Draghi about the limited implementation of Draghi’s Plan for Competitiveness in Europe, estimating that only ten percent had been realized.

Handelsblatt highlighted the growing convergence between Germany and Italy on migration management and industrial policy — particularly regarding the automobile sector. Both countries advocate for technological neutrality in the EU’s Green Deal, supporting innovation rather than enforcing a full phase-out of combustion engines. The publication also mentioned a joint document slated for presentation to the EU on 12 February, outlining strategies to enhance the bloc’s competitiveness. This paper, expected to be approved during the Rome summit, will be introduced at next month’s Leaders’ Retreat with the goal of achieving regulatory reforms by the end of the year, as reported by Italy’s financial daily Il Sole 24 Ore.

Diplomacy, Trade and Broader Cooperation

The Rome–Berlin relationship also extends beyond economics. Both Meloni and Merz share a cautious stance on tariffs and the Greenland situation, distancing themselves from France’s stronger approach. They aim to prevent a trade conflict with the United States and therefore have supported delaying retaliatory tariffs—an approach consistent with the EU’s later decision—after President Trump withdrew his proposed duties in Davos. “I welcome President Trump’s announcement to suspend the duties planned for 1 February on certain European states. As Italy has always maintained, it is essential to preserve dialogue between allied countries,” Meloni stated on Italy’s Porta a Porta program on Thursday.

Since Trump’s return to the White House a year ago, Meloni has prioritized diplomacy and dialogue, maintaining a privileged line of communication with Washington. Her conciliatory approach has also characterized Italy’s position on the free trade agreement with Mercosur, earning German approval for Rome’s decision to accept EU financial compensation for farmers and support provisional application of the deal pending final ratification by the European Parliament and the EU Court of Justice.

According to Italy’s Il Foglio, Rome and Berlin plan to consolidate their collaboration in the upcoming summit by signing around a dozen agreements. The new Italo-German action plan will outline common goals from the economy to technology, and extend cooperation in defence and space, building on joint ventures such as the one between Leonardo and Rheinmetall.